9939.HK WACC - Weighted Average Cost of Capital

The WACC of Kintor Pharmaceutical Ltd (9939.HK) is 8.1%.

The Cost of Equity of Kintor Pharmaceutical Ltd (9939.HK) is 7.95%.

The Cost of Debt of Kintor Pharmaceutical Ltd (9939.HK) is 8.50%.

	Range	Selected
Cost of equity	6.20% - 9.70%	7.95%
Tax rate	0.10% - 0.40%	0.25%
Cost of debt	7.00% - 10.00%	8.50%
WACC	6.4% - 9.8%	8.1%

WACC

9939.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.56	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.70%

Tax rate	0.10%	0.40%
Debt/Equity ratio	0.25	0.25
Cost of debt	7.00%	10.00%

After-tax WACC	6.4%	9.8%


Selected WACC	8.1%

9939.HK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 9939.HK:

cost_of_equity (7.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.